Gildan Activewear GIL.TO
Gildan Activewear is a manufacturer and distributor of basic apparel (t-shirts, sweatshirts, socks) for the imprint, promotion, and retail market, with own production in Central America and wholesale sales mainly in North America. Gildan trades at a forward P/E of 7.50, but the HanesBrands integration has weighed on free cash flow conversion (-72.76%) and activewear demand is softening, casting doubt on the sustainability of the 72.30% revenue growth.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Gildan Activewear is a manufacturer and distributor of basic apparel (t-shirts, sweatshirts, socks) for the imprint, promotion, and retail market, with own production in Central America and wholesale sales mainly in North America. Gildan trades at a forward P/E of 7.50, but the HanesBrands integration has weighed on free cash flow conversion (-72.76%) and activewear demand is softening, casting doubt on the sustainability of the 72.30% revenue growth.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.4 |
| Quality / Moat | 3.8 |
| Valuation | 5.8 |
| Growth | 9.5 |
| Dividend | 6.1 |
| Momentum | 3.9 |
| Risk & Context | 5.6 |
OVERALL SCORE: 5.6/10
Context and risks
Regulatory/geopolitical risk from exposure to tariffs (Section 301/338) on Canadian goods, which could affect cost competitiveness in its main market, the US. The HanesBrands integration adds execution risk.
News considered in the analysis
- Gildan (GIL) Has Halved Since Buying HanesBrands. Bargain or Broken Deal? — La integración de HanesBrands ha sido problemática, con la acción cayendo a la mitad desde la adquisición, lo que refleja dudas sobre la creación de valor y la ejecución.
- GIL Stock Draws Investor Attention After TD Securities Makes Steep Target Cut On Softening Activewear Demand — Un recorte significativo del precio objetivo por parte de TD Securities debido a la demanda débil de activewear es una señal negativa material para las perspectivas de crecimiento.
- Is Gildan Activewear (TSX:GIL) Undervalued On Its Pullback Or Still Too Pricey? — Artículo de análisis especulativo sin información nueva o concreta.
- Crocs Fuels Growth on Brand Power, Digital Reach and Product Innovation — Noticia sobre un competidor (Crocs) sin impacto directo en los fundamentales de Gildan.
- 3 Stocks Facing New Pressure From Section 338 Tariffs on Canadian Goods — La exposición a aranceles sobre bienes canadienses añade presión sobre los costes y la competitividad, aunque el impacto final depende de la estructura de producción y los acuerdos comerciales.
Verdict: Hold; wait for the HanesBrands integration to show improvements in free cash flow generation and for activewear demand to stabilize before adding to the position.
Main risk: The main risk is the execution of the HanesBrands integration: net debt is high (ND/EBITDA 4.10) and free cash flow conversion is deeply negative, which could lead to balance sheet stress if demand continues to weaken.
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